Update: Cronulla have moved to end speculation surrounding the future of Shane Flanagan, releasing a statement on Tuesday reaffirming his position as head coach.

"Contrary to media reports today regarding Shane Flanagan’s coaching future at the Sharks, the club has been in talks for some months regarding a contract extension," the statement read.

"These discussions have been very positive, with a view to an outcome in the near future.

"Shane Flanagan has a contract with the club for 2019 and the team continues to train and prepare for the upcoming NRL premiership season.

"At this point in time, neither the head coach or football club CEO will be discussing this matter further."

Earlier

Cronulla’s salary cap scandal has taken a bizarre twist with coach Shane Flanagan in the firing line as his job is suddenly in danger for next season.

Fox Sports journalist James Hooper has revealed Cronulla have sounded out replacements for the coach who broke their 50-year premiership drought as the NRL’s salary cap investigation deepens.

After Sharks chief executive Barry Russell self-reported an undisclosed, third-party player payment in August, the NRL has reportedly uncovered new information that could leave Flanagan to answer a number of tough questions.

It could be a major reason why the Sharks haven’t tabled Flanagan a new deal.

‘’It’s a little bit of a bizarre scenario…for whatever reason, the coach has not been signed to a long-term deal,’’ Hooper told Fox Sports News.

‘’Lots of people have been asking questions about that over the course of the last couple of months and what’s been bubbling since August, when it was revealed the Sharks were under investigation as a result of some salary cap irregularities when they self-reported, is that coach Shane Flanagan’s future is uncertain.’’

Hooper said the findings are set to be announced before Christmas, depending on whether Cronulla cooperate and allow the investigation to complete without standing in its way.

‘’I think this is going to continue to develop into a bigger and bigger story the more that the investigation goes on,’’ Hooper said.

‘’Initially when they self-reported, CEO Barry Russell was the man who put his hand up and said he believed there might have been a little irregularity. There was, but then when the NRL has gone down and had a further look at things, they’ve uncovered a lot of new information which now means the investigation has now broadened considerably.

‘’The 2016 premiership, as far as we are led to believe at this point, is most definitely not under threat, but this new information does mean that is quite detailed and it has been quite drawn out.

‘’If you look at the NRL investigations over the last couple of years in this area, you go back to Parramatta and of course Manly earlier this season, it was very thorough and at the end of it all we did see some really strong punishments and the findings were quite detailed.

‘’We’re thinking it should be wrapped up before Christmas, but if the Sharks were to not want to cooperate and perhaps try and play hardball, then I think it could drag into the new year and become a real distraction for everyone involved at the club.’’

During the coaching merry-go-round that saw five coaches land at new clubs, pending the moves of Wayne Bennett and Anthony Seibold, Cronulla were believed to be a player in the background.

But the recent coaching developments have forced a change of tactic, pushing them to look within their own ranks.

‘’The Cronulla Sharks have been sounding out potential coaches to replace Shane Flanagan,’’ he said.

‘’Now some of the names that have been mentioned have been the likes of Michael Maguire, the likes of Anthony Seibold, the likes of Des Hasler. Well the coaching musical chairs, the way that has all fallen, dictates that they all now have head roles and they all have seats.

‘’There is now increasing speculation that perhaps John Morris, who is already involved at the Cronulla Sharks in an assistant coaching capacity, has been spoken out in a caretaker role if it comes to that.’’